Vishnu Prakash R Punglia Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
VPRPL · price
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Vishnu Prakash R Punglia Limited has received a termination notice from North Western Railway regarding the rescinding of a contract for the major upgradation of Bikaner Railway Station. The contract was awarded to a Joint Venture (VPRPL-KSIPL BKN JV) in which the company is a partner. The termination results in forfeiture of Performance Guarantee worth INR 191.215 million (Bank Guarantee) and Security Deposit of INR 8.257 million, totaling INR 199.472 million at risk. The company has filed a Writ petition along with a stay application in Rajasthan High Court Jodhpur to challenge the termination and prevent encashment of the Bank Guarantee.
This is a significant negative development as the company faces potential financial loss of nearly INR 200 million. The legal challenge outcome will determine the actual impact on the company's financials and operations.